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Donald Trump’s Truth Social is poised to make its Wall Street debut after the Securities and Exchange Commission (SEC) has finally cleared a controversial merger that was delayed for years as regulators conducted a thorough inquiry.
The SEC has cleared the merger of Trump Media & Technology Group (which owns Truth Social) and Digital World Acquisition Corp. (DWAC), a SPAC which plans to bring the company public. That could give Trump a sizable ownership stake in the company. Trump is set own roughly 79 million shares of the company, according to new SEC filings.
DWAC shares were trading for just over $49.50 on Friday morning, putting the value of that stake at roughly $4 billion. (Lock-up rules would prevent him from accessing any of that money until six months after the merger is complete.)
The only step left at this point is for shareholders to approve the deal, something that is largely seen as a formality. The company plans to set a shareholder vote date later Friday.
DWAC stock has been largely stuck in neutral for the past year, trading in the $13-$17 range. About a month ago, it began to climb sharply, much like a meme stock, more than doubling its price in just days.
The path to SEC approval has been a rocky one. In June of 2022, DWAC announced securities regulators were seeking additional documents and information about the proposed merger. Specifically, authorities were interested in “communications regarding and due diligence of potential targets other than [Trump’s company].”
Trump’s deal with DWAC gives him virtually unlimited power at the company. A previous filing noted that no personal or political conduct could be considered terms of a breach of the agreement, even if it was “dishonest, illegal, immoral, or unethical.” Trump will also have the power to elect who sits on the board of directors and can potentially block matters that would normally require stockholder approval, including the acquisition of the company.
Trump currently has 6.6 million followers on the site.
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